That quote is the single biggest piece of Litecoin news this morning. It was written by Charlie Lee, who’s famously connected within the crypto community and is also the creator of Litecoin.
He recently proved that he has insider knowledge.
As the market was scrambling to find out why cryptocurrency values were falling, Lee posted that Chinese regulators were going to ban yuan to cryptocurrency exchanges. He was right.
It’s no secret who his source is, either.
Charlie’s brother, Bobby Lee, is the CEO of BTC China. He is a major player in the community there, and would necessarily have an ear to the ground. If they say there’s no truth to the rumors about a crypto mining ban, many investors will believe them.
Nevertheless, something is plaguing our Litecoin price forecast. LTC prices fell below $50.00 yesterday, after having recovered from the low $30.00s.
The Litecoin to USD exchange rate currently stands at $46.01. It reflected an 11.03% fall from yesterday’s level, and a 4.47% fall against Bitcoin. However, it is still up 7.41% for the week.
Rumors about China’s mining ban may be the culprit, although there is a bigger threat to the long-term Litecoin price outlook: low demand.
Trading volumes have fallen across the entire crypto market, slashing demand to one-third of what it was last week. This suggests that a lot of investors are simply waiting on the sidelines or else exiting the market.
We’ve seen this story play out before. Cryptocurrencies have fallen in and out of favor, and there’s no reason this time should be any different. Those that hold them over the long haul tend to walk away with a bag of riches.
That said, we believe the next recovery will favor niche market leaders, such as Bitcoin for public blockchains, Ethereum for decentralized apps, and Ripple for enterprise blockchains.